NT electricity supply: Customer demand ‘may not be met’ by 2027-28, increased outage risks

Minister leaves Territorians in the dark about what the future holds in terms of power generation in the Northern Territory. Find out more.

Minister for Essential Services Steve Edgington provides little information about the future of power generation in the NT, with predictions that demands won’t be met by 2027-28. Picture: Pema Tamang Pakhrin

The Minister for Essential Services Steve Edgington has provided little clarity on the future of NT electricity, as customer demands “may not be met by 2027-28”, a utilities report warns.

Since 2022 the NT Utilities Commission annual reports have forecasted shortfalls for generation capacity and essential system services – leading to an increased risk of power outages – were expected as early as 2026-27 in Alice Springs and 2027-28 in the Darwin-Katherine region.

Both the Darwin-Katherine and Alice Springs regions have experienced significant blackouts in recent years, with some Red Centre residents without power for nine hours in 2019.

A need for “prompt, decisive action” was highlighted in the 2024 annual report as 12 power station units around the Territory were expected to retire before 2030 – a concern the commission said puts the NT in a “prime, but precarious position”.

Alice Springs’ Ron Goodin power station was estimated to completely retire by December 31 this year, after many of the generating units had been progressively retired in the years prior.

Channel Island Power Station supports the Darwin-Katherine network but is expected to have most units retired by 2029. Picture: Che Chorley

The Channel Island power station – servicing the Darwin-Katherine region of around 150,000 customers – was expected to have units retiring from 2026 to 2029.

Despite providing no clarification as to what “not meet customer demands” meant for Territorians, Mr Edgington said measures were being taken to extend the life of some generating units.

“In the Darwin-Katherine region, Territory Generation is extending the life of its generating units to help maintain sufficient reliable capacity in the system at the lowest cost for periods of high demand,” he said.

“This will extend the life of heavy industrial gas turbine Channel Island units into the mid-2030s, and Weddell units towards the end of the decade.

“The operation of Ron Goodin Power Station generating units has significantly reduced in recent years, and Territory Generation is working towards Owen Springs-only operation in the Alice Springs power system by the end of 2026.”

Published in June last year, the 2023 NT Electricity Outlook report also stated that “the Commission is concerned that there is insufficient time to commit to and deliver appropriate solutions without resorting to inefficient stopgap measures”.

The Ron Goodin Power Station in Alice Springs will be retired before the end of 2025. Picture: File

While Mr Edgington was asked by this masthead what needed to be done to ensure appropriate solutions were delivered, and if it was as much a funding or workforce concern as time constraints – there was also little clarification in his response.

Mr Edgington – and the 2023 NT Electricity Outlook report – said projects were being undertaken in the Darwin-Katherine region, but also in other Territory locations.

“Territory Generation has a pipeline of battery energy storage system projects in development in Darwin-Katherine, Tennant Creek and Alice Springs,” he said.

“These will further improve system security and contribute to capacity and essential system services in these regions.”

Going forward, Mr Edgington said updated information would be included in the 2024 NT Electricity Outlook report, “which is usually published mid-year”.

“The 2024-2025 Utilities Commission annual report will also be updated with new information,” he said.

“We will continue to work with Territory Generation and all our stakeholders to ensure stable, efficient, and reliable power generation services.”

Originally published as NT electricity supply: Customer demand ‘may not be met’ by 2027-28, increased outage risks